Problem
The following information is provided by Abbott Corporation:
|
WIP inventory, January 1
|
0 units
|
|
Units started
|
12,000
|
|
Units completed and transferred out
|
8,000
|
|
WIP inventory, December 31
|
4,000
|
|
Direct materials
|
$26,700
|
|
Direct labour
|
$15,400
|
|
Manufacturing overhead
|
$9,000
|
The units in ending WIP inventory were 80% complete for materials and 40% complete for conversion costs.
What are the total equivalent units for direct materials for the Abbott Corporation if all manufacturing costs are added during the process?